U.S. and China hash out details on cleantech deal

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A major announcement is expected this week at the World Economic Forum in Dalian, China regarding a deal between the U.S. and China.  The deal seeks to establish a working relationship that will allow the two economic superpowers to collaborate on cleantech initiatives and lead the world into a low-carbon global economy in the 21st century.

"Entrepreneurs and financiers from the world's two biggest polluters have marked out the development strategy for a trillion dollar greentech market for inclusion in a bilateral climate agreement that is expected to be signed by the two governments when Obama visits China in November," The Guardian reports.

The agenda for Obama's visit to China in November will include the global economy, North Korea, and climate change.  While differences of opinion on how these items should be handled exists between the two countries, there is no doubt that many agreements will take place before then, and this week's meeting in Dalian is one of them.

Under the plan that is being agreed upon this week in Dalian, public policy and private sector money will align in an efort to greatly expand China's solar, wind, carbon capture, and smart-grid markets.  Of particular interest is carbon capture and sequestration and coal gasification technology. 

Both the U.S. and China are heavily dependent upon the use of coal for energy.  The role that coal is playing in climate change is coming under more scrutiny as the effects of emissions escalates.

China utility company, the Huaneng Group recently signed a deal with Duke Energy to collaborate on clean coal technologies.  "The two utilities said that they've signed a memorandum of understanding to share information and research on a number of renewable and clean-energy fronts, with a particular focus on carbon capture," GreetechMedia reports.

In addition to discussing technological advancements regarding coal, companies such as Boeing and GE hashed out details to jumpstart a cleantech, low-carbon economy with their Chinese counterparts, as well as did Suntech and BYD with their U.S. partners.  Many other firms participated in the months long discussion on the topic.

The U.S. and China have been collaborating for roughly six months on their joint effort to increase the use of cleantech technologies. 

The call for collaboration comes amidst speculation swirling around China's protectionist measures put in place to keep its stimulus money within their own borders.  "Such accusations have grown louder this year as Beijing has focussed the clean energy share of its massive 4 trillion yuan stimulus package on domestic firms. European wind turbine manufacturers complain they are being frozen out of a market that is doubling every year."  In addition, China has been accused of dumping their cheaper solar panels (because of government subsidies) on global markets sending their European and American counterparts into a tailspin.

The announcement later this week in Dalian will undoubtedly set the stage for President Obama's visit to Beijing in November.  With pressure being applied to China from industrialized nations to cut greenhouse gases in an effort to fight climate change, Chinese officials seem to be listening.  Japan's recent calls for cuts of 25% by 2020 to its own emissions has also added to China taking steps to participate more fully in cooperating on climate change.

"The US and China are likely to sign an agreement to combat climate change during President Barack Obama's visit to Beijing in November," China Daily reports.

This is a promising development amid the recent talk of the climate conference in Copenhagen in December falling short of its goal to bring the nations of the world together to combat climate change.  The deal between China and the U.S. will provide the necessary stimulus and leadership to get the talks back on track.

While agreements of emission cuts of 20-25% by 2020 and agreements to enhance clean technolgies by the world's governments are moves in the right direction, scientists still claim that cuts of emissions around 40% aare necessary to fend off disastrous climate change effects.  In addition, clean coal technology does not mitigate the environmental damage that goes along with mining it.  In fact, raising efficiencies and lowering emissions on coal will most probably lead to an increase in its use. (The Coal Question)

Still, the agreement between China and the U.S. is a positive development, and the U.S. cleantech industry will benefit greatly from new markets opening up in China.

For more info:  Obama to visit China mid-November, Reuters.

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